EUR/USD
During the last week the EUR/USD currency pair has tested its upper resistance of 1.5050. That was followed by expected profit taking. Now we can notice the famous Head and Shoulders Top pattern on Wednesday. You can see how the upper trend line was broken, and then retested again from the down side – that point when the market shoot up again was offering an excellent opportunity to enter the market in a contra trend trade with the stop loss above the previously set high of 1.5050.
(Note for those that do not know: if you want to see a larger and clearer chart, you can just click on it).
This week, we will probably see testing again of those highs. Long term trend remains on the upside and any down moves should only present an opportunity to reenter into that side of a trade. Levels below previously retested support around 1.4820 should serve as a good point to allocate your stop loss taking orders.
USD/JPY
Looking at short term hourly chart, it becomes obvious that the rebound from sub 90 level did not last and that the market is resolute to test the lows again.
RSI indicator does not seem to be oversold at all which may indicate that there is a plenty of space to the down side.
There are some fundamental news that can effect Yen this week, so make sure to follow it. Anything out of the ordinary can easily push the market below its long term resistance of 88.00 mark.
What is extremely important to note here is that it seems the Japanese government is intervening around that level, so it may be a very high volatility if we test those waters– the government may not easily give up its position of trying to hold that down market.
The most important Economic announcements:
On Monday at 8:30 AM EST, US will release its Retail Sales for October which is expected to rise by 0.9%.
Tuesday at the same time will see first numbers on US inflation come out with its Producer Price Index. On the same day, at 9:15, US Industrial Production is coming out.
Wednesday will be marked by the news from Great Britain with their release of Bank of England meeting minutes which should indicate the future of interest rate in that country. At 8:30 AM EST US Consumer Price Index will be hitting the wires.
Friday will be very important day for Japanese Yen traders as their central bank will be stating their interest rate decisions.
You Might Want To Check These Out:
- Market Analysis for USD/JPY October 26th, 2009
- Weekly Update Sept. 14, 2009
- Week Ahead Aug. 24th, 2009
- Market Update Following Fed, Nov. 5th, 2009
- Market Update – Trend Confirmations
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